LS ELECTRIC, earnings growth is expected to continue steadily from next year due to expansion of renewable energy investment (Hyundai Motor Securities)
LS ELECTRIC, earnings growth is expected to continue steadily from next year due to expansion of renewable energy investment (Hyundai Motor Securities)
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  • 승인 2021.11.26 08:20
  • 최종수정 2021.11.26 00:45
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This article is translated by AI company Flitto and Infostock Daily using neural machine translation technology.

 

LS Electric CI
LS Electric CI

Hyundai Motor Securities maintained its target stock price of KRW 68,000 and its investment opinion of "buy", saying it should pay attention to the increase in order balances for LS ELECTRIC.

Hyundai Motor Securities analyzed, "Third-quarter earnings fell short of the consensus, but fourth-quarter earnings are expected to improve.".

"Its third-quarter performance fell below consensus due to weaker-than-expected performance in the power infrastructure sector, and its fourth-quarter performance is expected to see an improvement in electricity costs due to the growth of new and renewable businesses centered on power infrastructure turnaround and solar energy businesses," Hyundai Motor Securities said.

Hyundai Motor Securities also added, "In its ninth transmission cost plan, KEPCO will expand its investment in power facilities to accommodate 77.8GW renewable energy by 2034, and will expand ESS (Energy Storage System) facilities to stabilize the power system and expand investment in connection with large-scale renewable energy integration complexes.".

"Sales in the power infrastructure and automation sectors will continue to grow due to increased investment in South Korea's secondary batteries and automakers, and in particular, the power infrastructure sector will be reflected in the fourth quarter to contribute to sales and improve profitability," Hyundai Motor Securities said.

Hyundai Motor Securities added, "The power equipment business is also steadily growing in sales due to growth in the European and Southeast Asian markets, and we expect to benefit from increased investment in renewable energy due to accelerating global carbon neutrality.".

"Stock prices are sluggish due to third-quarter earnings, but earnings growth is expected to remain stable from next year due to increased corporate investment directly linked to profits and investment in renewable energy worldwide," Hyundai Motor Securities said. "The confirmation of the fourth-quarter earnings turnaround is expected to be stock price momentum.".

Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
 


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